19400603_Minutes.pdf

ERS

A meeting of the Board of Governors of the Federal Reserve System/las held in Washington on Monday, June

Niel,

41Reserve System held on May Z1, 1940, were approved unanimously.

Mr• Morrill stated that in accordance with the previous dis-

48 which he had had with members of the Board and the authority

'1i4t1t" kr them, and vith the approval of Mr. Paulger, Chief of the

:781°11 Of xaminations, arrangements had been completed for the trans-'r q a. C.

Noe11,

4°448 Assistant Secretary, to the Division of Examina-

a Federal Reserve

t, Examiner and for the transfer of Fred A.

Federal Reserve Examiner, to the Position of Assistant Secretary

eeretli lite 8tarYt s Office, it being understood by all concerned that

ti4e r4118fers Would become effective on June 10, 1940, that for the

it iv beiL11 there tould be no change in Mr. Nelson's salary although

IN:8 EPIPlated that if he sho-ed the anticipated aptitude and

ktet e4 ill his new duties his salary would be increased at an early

NI '4" that Mr. Noell's salary would be determined after furtherelqtation with Mr. Paulger and the members of the Board after it

7 1940, at 11:30 a.m.

PRESENT: Mr. Ransom, Vice ChairmanMr. SzymczakMr. DavisMr. Draper

Mr. Morrill, SecretaryMr. Bethea, Assistant SecretaryMr. Carpenter, Assistant SecretaryMr. Clayton, Assistant to the Chairman

The action stated with respect to each of the matters hereinafter

4terred to was taken by the Board:

Theminutes of the meeting of the Board of Governors of the

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6/v40

was der.

1113-telY determined Thether Mr. Noell would be assigned to the

f°I.Ce of the Division of Examinations.

The transfers were approved unanimously,effective as of June 10, 1940, and Mr. Noellwas appointed an examiner to examine FederalReserve Banks, member banks of the FederalReserve System, and corporations operatingunder the provisions of Sections 25 and 25(a)of the Federal Reserve Act, for all nurposesOf the Federal Reserve Act and of all otherActs of Congress pertaining to examinationsmade by, for, or under the direction of theBoard of Governors of the Federal ReserveSystem, and was designated as a Federal Re—serve Examiner.

field

—2—

MeS , morandum dated May 29, 1940, from Mr. Carpenter, Assistantec4.etar,

rueommending that, for the reasons stated in the memorandum,-4, .--

?kir

aneta),. n, Chief Telegraph Operator in the Office of the Secre—' Who i

°- Past 55 years of age, be retired as of August 1, 1940,kcl that the

Board make such special contribution to the Retirement'etetlii Of +1,

e _

tilev, '" Federal Reserve Banks as may be necessary ($211,70) toa ea 4 Ai

ktIlarn

r. Mulranen's retirement allowance to the rate of ,1'..,600 per— 011a life basis.

Approved unanimously.Memo__

r0, .--a.ndum dated May 31, 1940, from Mr. Morrill recommending

4- thekb reason stated in the memorandum, Bruce C. Bishop be—Ated

Ntiott a Page in the Office of the Secretary, with salary at the

1'080 Per annum, effective as of the date upon which he111104 +1.4

'444 '"e performance of his duties after having passed satis—

'44' the usual physical examination.

Approved unanimously.


8286/z/40

-3-

Memorandum dated May 29, 1940, from Mr. Paulger, Chief of the

14N1811 of Examinations, recommending that, for the reason stated inthel -4andum, Mrs. Nancy R. Porter he appointed on a permanPnt

:4818 48 a stenographer in the Division, with salary at the rate or

annum,effective as of the date upon which she enters upon

Der4f"ilence of her duties after having passed satisfactorily the11811a1

physical examination.


4e/lorandum dated May 24, 1940, from Mr. Goldenweiser, Director°r the tit, -vision of Research and Statistics, recommendin_g that, fortie reas

°n stated in the menorandum, Mrs. Thelma L. Hutchison be—ced

a. temporary basis for a period of not to exceed three4kths a5

a clerk in that Division, with salary at the rate of U201(311th

Derrort 1 effective as of the date upon which she enters upon the

ellee of her duties.


Letter to Mr. John G. Nichols, Chief, Division of Examination,De r,v'elt Insurance Corporation, reading as follows:

4ter:In accordance with your verbal request, the Board ofkvtiti;,°,rs of the Federal Reserve System hereby grantsSectir: ;onsent, in accordance with the provisions of sub-

( k) (2) of section 12B of the Federal Reserve Act,tiotie-taillillers for the Federal Deposit Insurance Corpora-

Inake nach examination o the First Citizens BankglzireW4et Company of Utica, Utica, New York, as nay be re-to

consummate the rehabilitation program for that131WeerIns for which, it is understood, have been corn-



8296/t/40

-4-

Letter to the Presidents of all Federal Reserve Banks, reading

a8r°11ows.

#8, 12)"The Board's letter of i.larch 16, 1939 (5-149) (F.R.L.S.13( outlined the general principles agreed upon by thepo Td, the Comptroller of the Currency, and the Federal De-ti.84't Insurance Corporation rith respect to the administra-r: °f Regulation U as annlicable to nationsl banks, StateID%

banks, and nonmember insured banks.De Sub sequently the cooperation of the State Bankingteeartillents was sought in extending the administration ofs42egulation on a somewhat similar basis to noninsuredState

banks. The matter was discussed with Mr. Villiam R.thE;t11 SuperintPndent of Banks of New York and Chairman ofors xeoutive Committee, National Association of Supervisors

4,11te Banks. Vie have now been advised that thus far 44State Bank Supervisors have agreed to cooperate in

pro -'111inistration of Regulation U in accordance with the4ram outlined by Mr. Vihite in his letter of February 5,vie() to the members of the National Association of Super-he d State Banks. The four States which remain to bePenn fr°m are Louisiana, Mississippi, New Jersey, andsYlvania.

lette closed for your information is a copy of Mr. 7hitelscooper and it is assumed that the Reserve Banks willklurate to the fullest extent with the State Banking De-114 entsin this work along the lines indicated. The Boardof:fie-Pressed to Mr. nite its appreciation of his good4atiorel:7,and the cooperation shown by the members of tilzatIgees:.-1- Association of Supervisors of State Banks. iskite ;ied that you might wish to express to the heads of theatton azking Departments in your district your own appreci-

of their cooperation."

Approved unanimously, together witha letter to Mr. William R. White, Super-intendent of Banks of the State of NewYork, reading as follows:

the he Board is in receipt of advice from Mr. Gidney, ofeueral Reserve Bank of New York, to the effect that

air 't4 of the State Bank aupervisors have expressedti144b, _04 uillingn3s to cooperate in the administration of Reg-kr in accordance with the program discussed with you46 ,• raw- board ;eery Chief of the Board's Division of Examinations.OU O

as asked me to express to you its appreciation ofthge°N°d °faces and the cooperation shown by the members

ational Association of Supervisors of State Banks."


830

-5-

Memorandum dated June 1, 1940, from Mr. Smead, Chief of the

M.on of Bank Operations, recommending that the balance of approxi-

44tel $6,000,000 of the Netherlands Bank with the Federal Reserve

"ew York, which is now carried as a balance of the Netherlands6e

rilinetit) be included in the weekly statement of condition of Fed-fL

erve Banks against the caption "Other deposits" rather thanxl1Et thetat

present caption "Deposits-Foreign bank". The memorandumB

bee'44e effective the entire account would be carried by the Federal

Bank

NI Reserve

Banks as at present.


that it was understood that if and when the proposed chmge

of New York instead of being participated with other Fed-

Letter 44i1/ -ver to Mr. Walter Lichtenstein, Secretary of the Federal

tkt'Y.`4111C11, reading as follows:

sut "The Board of Governors has given consideration to thete:ents submitted by the Federal Advisory Council at theri4iy:g with the Board on May 21, 1940, and has asked me to1tY°u as follows with respect thereto:

raeritp - review is bPinu made, in the light of recent develop-Of the Provisions of law which prohibit the 1?.scignt&Be Of claims- on the United States. As soon as this reviewthe (012eted, the Board will give further consideration to

s recommendation the find form of %,hich hasN 4'een received by the Board) and advise you of the44.on reached.

18 You have undoubtedly observed from the press, theree likelihood that the Jones-Wheeler bill (H.R.8748

er;:) will be passed at this session of Congress ande01 -6!et there has been substituted therPfor a new bill'1'4140'4'1 which was introduced by Mr. Jones on May 21.

CoPies each of an analysis of the new bill and a(1 C01 On Section 4 of the bill which was sent by the Board41niteqreesman Jones as Chairman of the House Committee on

1Lture under date of May 23, 1940, are enclosed here-


vt/40-6-

with f, -or the information of the Council. Because of these„]ffe-L°Pments, the Board is taking no action in connection

the stateffient submitted by the Council on the Jones-meeler bill.214 "Inasmuch as Brown indicated at the meeting on MayLo 'hat the first of the two amendnents to Regulation U,stans by Banks for the Purpose of Purchasing or Carrying„"ks Registered on a National Securities Exchange, sug-

50Ved+1, by the Council might be discussed at the next meetinv

there " Council, the Board is taking no action with respectniearf t°• Consideration will be given to the second amend-pel ° Regulation U suggested by the Council, which would107" a bank to take over from a broker an undermargined

de for the purpose of purchasing or carrying securi-clecis' and the Council will be informed of the Board's

81:on as promptly as possible.dra The attention of the members of the Board has beenta:11 to the memorandum which you left with me, followingwithraci"tinR on May 21, in which you stated that the Councileasy, rew its request that its statement on the subject ofPecfe,111°,1eldr be published in the forthcoming issue of theOf Reserve Bulletin and will reconsider the questionhopPeublication at its September meeting by which time itthats,to have from the Board any comments on the statement

tuthe Board may desire to make.Commi4t, is assumed that as soon as the Council has appointed

gesti;Lutee to discuss with the Board the comments and sug-colma '118 which the members of the Council wish to make instairtion with the Banking Studies prepared by the Board's' You will advise us accordingly."


Thereupon the meeting adjourned.

4bV.4TU-e—L

831

Secretary.


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